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Premier Products SolutionPREMIER PRODUCTS, INC. – SOLUTIONTABLE APRODUCTTotalUnits produced1,0001,0001,0001,000Material$15.00$ 5.00$10.00$ 5.00+ Labor30.0015.0010.00+Variable OH15.00= Total var. cost$60.00$17.50$30.00$22.50+ Fixed overhead$10,000$10,000$12,500$12,500= Unit cost$70.00$27.50$42.50$35.00Selling price$98.00$38.50$59.50$49.00Unit Profit$28.00$11.00$17.00$14.00Mark-onTotal Profit$28,000$11,000$17,000$14,000$70,000The overhead rate for the year is determined by adding together the budgeted variable and fixed overhead costs and dividing this sum by the number of budgeted labor hours. The standard cost of.